Cost Estimate For Construction Works

Preliminary Works

ITEM

NO.

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DESCRIPTION OF EQUIPMENT/SERVICES/WORKS

QTY

 

UNIT PRICE (RM)

TOTAL PRICE

(RM)

   1.0

1.1

1.2

1.3

1.4

1.5

 

PRELIMINARIES

Performing checks required on the availed data and information which is relevant to the project regarding the layout of the site, the existing conditions of the site and all that is required to undertake the task (Brook, 2012)

To come up with two copies of the drawing, a hard copy and soft copy (stored in open drive) bearing the details of the project design as well as the specifications of the client.

Protection of the finishes that are existing in all the areas that are affected by the construction work and taking note of the defects that the construction will have on the existing structures (James, 2014). Clearance and thorough cleaning to be conducted in all the parts in which the work is to be done before the commencement of the work and after completion.

Provision for the Bank Guarantee as an Earnest Money, Public Liability Insurance and Workman Compensation insurance (Cornuejols, 2014)

Defects Liability Period (DLP) to all work related to project shall be one (1) year after handing over the process to the client (Bhavikatti, 2017).

LS

2.0

CONSTRUCTION WORKS

Supply of tools, equipment, labours, machinery, professional supervision, materials and all that is needed in the accomplishment of the construction task of the project (Cornuejols, 2014); 

Note: Refer drawing for details – Project 1 attached

2.1

Demolishing of any old structures and building, clearing of garbage and flora and eliminate from site.

LS

2.2

Excavating manually and keeping some part to be used in backfilling and the remaining discarded (Inmon, 2014)

LS

2.3

Construct Brick Fence footage of 600 mm thick x 150 mm (W) on-site concrete British Reinforced Concrete A7 sides formwork and concrete G25 and others to complete.

600 m

2.4

Construct Brick Fence infill metal panels for installation between columns. Size of the metal panel:-

a)  50 mm (L) x 75 mm (W) x 1200 mm (H) (III, 2014)

LS

$100 per meter supply and delivery

2.5

Construct 150 mm thick x 300 mm (W) x 300 mm (L) cast on-site concrete column, concrete G25 as footage and British Reinforced Concrete A7 sides formwork and for the brick fence.

LS

2.6

Supply and install 225 mm (L) x 112.5 mm (W) x 75 mm (H) Face bricks

1040 pieces

$700 per thousand supply & delivery

2.7

Supply and install 2400 mm (H) x 2500 mm (W) steel garage door (James F. Kurose, 2015).

1 no

$300 per piece

Supply and install 300 mm (L) x 300 mm (W) x 20 mm (H) sandstone capping

20 nos

$200 per meter at each edge

2.8

Close turf affected area to include Backfilling side of ground beam spread level.

LS

2.9

Site cleaning upon completion

LS

3.0

Total Cost for Items 1.0-2.9

 

 

4.0

 

ADDITIONAL REQUIREMENTS (OPTIONAL)

Any other items meant to meet the specifications of the project but are not included in the technical specifications part to be included (Tütüncü, 2015)

Please state and describe all items forming part of the above works:-

a)

b)

c)

d)

LS

LS

LS

LS

Total Cost for Item 4.0

 
  1. The calculations of the labour for installation of the metal panels are based on the length of the fence installed. The labor charges are done as per the perimeter of the fence.
  2. The labor components of the project will be priced at the same rate. The project had tendered, and adjustments on the original documents may lead to slowing down the progress of the work, which would lead to delays(Moore, 2016).
  3. The project has deployed labour services from sub-contractor in which the sub-contractor supplied both skilled and unskilled labor to towards the project. The main contractor would be in charge of the subcontractor who is contracted to supply labor(Stiglitz, 2011)
  4. The manufacture of sandstone capping was done through precast hence the risk of delay was experienced should the manufactured failed to deliver the supplies on time. This means the project was to be halted as the supplies of the sandstones capping were yet to be made. The risks can be covered by keeping the suppliers informed on the urgency of the delivery and conducting close supervision of the supplies to ensure they are done on time as per the specified time schedules(Towey, 2012).

The benefit of estimating the cost of a task by separately costing the materials, labour and plant required.

The quality and quantity of the materials which are required can be full and accurately determined before the commencement of the project (Baron, 2017).

The delays are reduced. By having accurate quantities of materials, labour, and equipment which are needed for the project to be completed it is much easier to set dates when the project will commence and when it is expected to be complete.

It is much easier to administer the project by using the estimations. This is because the client and the contractors are aware of what is expected from them by using the resources which are listed in the quotation (Willis, 2015).

The quality of the overall project improves. Once the contractor who has been tasked to execute the project has the overall view of what e/she requires to carry out the project. He/she will now focus on how to construct a high-quality project.

It improves the flexibility of the project. Once the amount of labour, materials, and plant which will be required for the project has been estimated there is always room for adjustments during the construction process in that way the flexibility of the project is increased (Bhavikatti, 2017).

It makes it easier to control (cost) finance of the project. All the quantity of the materials and equipment required for the project are pre-determined to ensure that enough money is set aside to cater for them all.

To eliminate sub-used labour and equipment maintenance.

Once the project has been subcontracted each subcontractor know how to deal with his/. Her own labour which and equipment which in turn reduces the sub-using different labour at different phases of the project.

List the considerations that would affect your decision on whether to tender on a project or not.

  • The time available for the project to be carried out. The time available greatly determines whether the client can execute the project alone or he/she has to tender.
  • The budget of the project. Which will determine if there are sufficient resources for the project to be executed. The budget which the different binders present during the biding has a great impact whether the client will render the project or not.
  • Availability of materials labour and equipment for the project to be completed.
  • The type of the project to be constructed. The type of the project determines the input regarding the materials, labour, and finance. The small projects are usually administered by the client without necessary tendering out. But in cases of massive projects, the client can opt to involve other parties to improve the quality of the project.
  • The span/size of the project which is to be constructed(Brook, 2012).

Factors which determine the size of plant needed to complete the task.

  • The type of the project.

The type of the project affects the price. This is because the size of the project greatly influences the exaction being done. For instance, in the cases where the project is massive and has to have basements, it, therefore, requires deep excavations unlike the small projects which require just strip foundation, and there are no basements (Cornuejols, 2014).

  • The amount of waste soil that has to be moved.

Where there is a lot of waste soils that are to be moved heavy plant are required which can be able to carry out the task without any challenge (Xpress-MP, 2010).

  • The size and depth of the excavation.

Construction Works

The size and depth of the hole to be excavated greatly influences the type of equipment and machinery which is required to carry out the task (Fatzinger, 2014).

  • The type of soil to be excavated.

If the soil in your at the site has particular characteristics that complicate the excavation process, then the sophisticated equipment will be required to do the excavation.

The builder’s margin include (Seeley, 2013);

  • Supervision
  • Progressive cleaning
  • Setout
  • Insurances
  • Council inspection
  • Temporary services
  • Rubbish removal
  • Site fencing
  • Safety equipment
  • Access

Why do engineering drawings take precedence over architectural drawings when estimating and constructing a project?

The engineering drawings tend to be consistent in that the ideas are logically presented, unlike the architectural drawings. Consistent methods allow several estimators to complete various parts of the quantity survey, or be continued later by another estimator (Hagan, 2011).

The uniformity of the engineering drawings enable the cost estimator to come up with a system of estimating forms and procedures that exactly meet the requirements of the project, and that is understood and accessible by other parties who are involved in the project. The architectural drawing lacks that aspect of uniformity which makes it very difficult in estimating the cost of the project (Rubenstein, 2016).

The engineering drawings, unlike the architectural drawings, allow an engineer to be involved in coming up with a structure that will aid in researching and developing alternative methods that will result in cost optimization.

The engineering drawings can be used for the verification process of the bill of quantities which have been generated/ the architectural drawings cannot be used for this purpose (III, 2014).

The engineering drawings in most cases are detailed and straightforward to understand the speciation which is presented, unlike the architectural drawings which in most cases presents ideas on how the spaces will be used without giving the clear specifications which will be used.

 Reasons for sub-contracting pr5ojkects to other parties during the construction process.

  • To improve flexibility

The flexibility of a company can be defined as the ability of the company to adopt to the changes in the market. By subcontracting any given project the regarding the labour and the finance (Inmon, 2014).

  • To Increase Productivity

By subcontracting very specialized teams are involved in the project. The subcontractors tend to start presenting larger productivity than when the main company was to be involved alone (James F. Kurose, 2015).

  • Improves the Product’s Quality

By involving specialized people in all the phases of the project, there are very high chances that the overall project on completion will be of high quality unlike when only one company was to be involved in the execution (Tütüncü, 2015).

  • To eliminate sub-used labour and equipment maintenance.

Considerations for Decision Making

Once the project has been subcontracted each subcontractor know how to deal with his/. Her own labour which and equipment which in turn reduces the sub-using different labour at different phases of the project (James, 2014).

  • To ease the control of finances

Subcontracts are very fixed contracts. During the process of subcontracting all the teams are required to present their bill of quantities to determine which of the subcontractors can provide the services at the lower price at the same time the agreed amount of money are never changed. The cost of supervision is also lowered by subcontracting (Lippman, 2015).

  • To reduce delays.

During the process of subcontracting all, he involved parties agree on the duration which the contract should run. All the teams involve a lot of labour to ensure that the task which they are assigned is done within the agreed deadlines. To avoid the penalties which are well stated in the contract law (Turton, 2013).

Issues of obtaining quotations from specialist trades or companies with whom you have no previous association and no direct knowledge of.

The specialist or the company is likely to increase unusual additions in the quantities of materials. The unusual additions will result to the execution of the project being very expensive. The quotations which are obtained can not be able to fully and accurately represent the quantities of materials and work to be carried out (Lovell, 2015).

The obtained quotation cannot be able to be used properly for the administration of the project because the contents of this quotation are not accurate. The quotation cannot also be used to estimate the cost of the similar project in future. Also, the specialist or the new company can take advantage to exploit and exaggerate the charges which they usually charge to their clients.

 On-costs associated with directly employed labour.

  • Pension contributions
  • Payroll tax.
  • Commissions
  • Piece rate wages.
  • Direct labour salaries

Conditions of a contract which may produce a cost on the project and are included in the bill of quantities (Moore, 2016).

  • Penalties
  • Price variations clauses
  • Payment conditions
  • Contract change conditions
  • Validity considerations

How to calculate the labour cost to complete a task when you do not know the time involved to carry out the work.

In the cases where one is not aware of the time which has been allocated for the project, it is much better to look at the similar projects which have been done. The high level of repeatability of different aspects of the project can allow one to estimate (Packer, 2016). The project is divided into different aspects of work the cost per unit of he completed project should be compared to the unit of work which you divided. The multiply the cost per unit by the total number of units.

References

Baron, M. (2017). Probability and Statistics for Computer Scientists, Second Editio. Paris: CRC Press.

Bhavikatti, S. S. (2017). Basic Civil Engineering. London: New Age International Limited,

Brook, M. (2012). Estimating and Tendering for Construction Work. Chicago: Taylor & Francis.

Cornuejols, G. (2014). Optimization Methods in Finance. Texas: Cambridge University Press.

Fatzinger, J. A. (2014). Basic Estimating for Construction. London: Prentice Hall.

Hagan, M. T. (2011). Neural network design. London: Martin Hagan.

III, M. F. (2014). The Measurement of Environmental and Resource Values: Theory and Methods. London: Routledge.

Inmon, W. H. (2014). Building the Data Warehouse. Texas: John Wiley & Sons,

James F. Kurose. (2015). Computer Networking: A Top-Down Approach. Paris: Pearson Education, Limited,

James, C. (2014). Practice and Procedure for the Quantity Surveyor. Chicago: Blackwell Scientific Publications,

Lippman, D. (2015). Math in Society. Berlin: CreateSpace Independent Publishing Platform.

Lovell, M. C. (2015). Economics with Calculus. London: World Scientific,

Moore, J. D. (2016). Proceedings of the Seventeenth Annual Conference of the Cognitive Science Society. Texas: Psychology Press.

Packer, A. (2016). Building Measurement. Chicago: Routledge.

Prata, S. (2016). C Primer Plus. London: Addison-Wesley.

Rubenstein, P. (2016). Integrated Mathematics: 1, Book 1. Berlin: McDougal Littell Incorporated,

Seele, I. H. (2016). Building Quantities Explained. London: Macmillan Education UK,

Seeley, I. H. (2013). Quantity Surveying Practice. Texas: Springer Customer Service Center Gmbh.

Stiglitz, J. E. (2011). The Stiglitz Report: Reforming the International Monetary and Financial Systems in the Wake of the Global Crisis. Paris: New Press.

Thomas, T. A. (2013). Engineering Economics for Capital Investment Analysis. London: Allyn and Bacon.

Towey, D. (2012). Construction Quantity Surveying: A Practical Guide for the Contractor’s QS. London: John Wiley & Sons,

Turton, R. (2013). Analysis, Synthesis, and Design of Chemical Processes. Chicago: Prentice Hall,

Tütüncü, R. (2015). Optimization Methods in Finance. London: Cambridge University Press.

Willis, A. (2015). Willis’s Elements of Quantity Surveying. Chicago: John Wiley & Sons.

Xpress-MP, A. o. (2010). Applications of Optimization with Xpress-MP. Chicago: Blackwell Scientific Publications.

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